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Corporation Tax (Northern Ireland) BillPage 40

(4) The amount of the land remediation tax credit to which the company is
entitled for the accounting period is, where the company has both a
Northern Ireland qualifying land remediation loss and a mainstream
qualifying land remediation loss, the sum of—

(a) 5the amount of the Northern Ireland qualifying land
remediation loss multiplied by the relevant percentage, and

(b) the amount of the mainstream qualifying land remediation loss
multiplied by the percentage specified in section 1154(1) of CTA
2009.

(5) 10For the purposes of this section “the relevant percentage” means—


where—

  • A is the percentage specified in section 1154(1) of CTA 2009;

  • B is the percentage specified in section 1149(8) of CTA 2009;

  • 15C is the adjusted section 1152 percentage as defined by section
    357QB(6).

357QD Restriction on losses carried forward where tax credit claimed

(1) In section 1158 of CTA 2009 (restriction on losses carried forward where
tax credit claimed), subsection (2) and subsection (5) so far as applying
20for the purposes of subsection (2) do not apply to a company in relation
to a qualifying trade it carries on in an accounting period in which it is
a Northern Ireland company (and the following provisions of this
section apply instead).

(2) If the company in the accounting period—

(a) 25claims a land remediation tax credit to which it is entitled, and

(b) has a Northern Ireland loss,

that loss is treated for the purposes of section 45 of CTA 2010 (relief for
trading losses against future trading profits) as reduced by the amount
of the surrendered Northern Ireland loss for the period.

(3) 30If the company in the accounting period—

(a) claims a land remediation tax credit to which it is entitled, and

(b) has a mainstream loss,

that loss is treated for the purposes of section 45 of CTA 2010 as reduced
by the amount of the surrendered mainstream loss for the period.

(4) 35For the purposes of this section—

(a) the “amount of the surrendered Northern Ireland loss” for the
period means the amount of the Northern Ireland qualifying
land remediation loss in respect of which the company claims a
tax credit for the period, and

(b) 40the “amount of the surrendered mainstream loss” for the period
means the amount of the mainstream qualifying land
remediation loss in respect of which the company claims a tax
credit for the period.

Corporation Tax (Northern Ireland) BillPage 41

CHAPTER 11 Film tax relief

Introductory
357R Introduction and interpretation

(1) This Chapter makes provision about the operation of Part 15 of CTA
52009 (film tax relief) in relation to expenditure incurred by a company
in an accounting period in which it is a Northern Ireland company.

(2) In this Chapter—

(a) “Northern Ireland expenditure” means expenditure incurred in
a trade to the extent that the expenditure forms part of the
10Northern Ireland profits or Northern Ireland losses of the trade;

(b) “the separate film trade” has the same meaning as in Chapter 3
of Part 15 of CTA 2009 (see section 1195(5) of that Act);

(c) “qualifying expenditure” has the same meaning as in that
Chapter (see section 1199(3) of that Act).

(3) 15References in Part 15 of CTA 2009 to “film tax relief” include relief
under this Chapter.

Film tax relief
357RA Northern Ireland additional deduction

(1) In this Chapter “a Northern Ireland additional deduction” means so
20much of a deduction under section 1199 of CTA 2009 (additional
deduction for qualifying expenditure) as is calculated by reference to
qualifying expenditure that is Northern Ireland expenditure.

(2) A Northern Ireland additional deduction forms part of the Northern
Ireland profits or Northern Ireland losses of the separate film trade.

357RB 25 Northern Ireland supplementary deduction

(1) This section applies where—

(a) a company is entitled under section 1199 of CTA 2009 to an
additional deduction in calculating the profit or loss of the
separate film trade in an accounting period,

(b) 30the company is a Northern Ireland company in the period,

(c) the additional deduction is wholly or partly a Northern Ireland
additional deduction, and

(d) any of the following conditions is met—

(i) the company does not have a surrenderable loss in the
35accounting period;

(ii) the company has a surrenderable loss in the accounting
period, but does not make a claim under section 1201 of
CTA 2009 (film tax credit claimable if company has
surrenderable loss) for the period;

(iii) 40the company has a surrenderable loss in the accounting
period and makes a claim under that section for the
period, but the amount of Northern Ireland losses

Corporation Tax (Northern Ireland) BillPage 42

surrendered on the claim is less than the Northern
Ireland additional deduction.

(2) The company is entitled to make another deduction (“a Northern
Ireland supplementary deduction”) in respect of qualifying
5expenditure.

(3) See section 357RC for provision about the amount of the Northern
Ireland supplementary deduction.

(4) The Northern Ireland supplementary deduction—

(a) is made in calculating the profit or loss of the separate film
10trade, and

(b) forms part of the Northern Ireland profits or Northern Ireland
losses of the separate film trade.

(5) In this section “surrenderable loss” has the meaning given by section
1201 of CTA 2009.

357RC 15 Northern Ireland supplementary deduction: amount

(1) This section contains provision for the purposes of section 357RB(2)
about the amount of the Northern Ireland supplementary deduction.

(2) If the accounting period falls within only one financial year, the amount
of the Northern Ireland supplementary deduction is—


20

where—

  • A is the amount of the Northern Ireland additional deduction
    brought into account in the accounting period;

  • B is the amount of Northern Ireland losses surrendered in any
    25claim under section 1201 of CTA 2009 for the accounting period;

  • MR is the main rate for the financial year;

  • NIR is the Northern Ireland rate for the financial year.

(3) If the accounting period falls within more than one financial year, the
amount of the Northern Ireland supplementary deduction is
30determined by taking the following steps.

Step 1

Calculate, for each financial year, the amount that would be the
Northern Ireland supplementary deduction for the accounting period
if it fell within only that financial year (see subsection (2)).

35Step 2

Multiply each amount calculated under step 1 by the proportion of the
accounting period that falls within the financial year for which it is
calculated.

Step 3

40Add together each amount found under step 2.

357RD Film tax credit: Northern Ireland supplementary deduction ignored

For the purpose of determining the available loss of a company under
section 1201 of CTA 2009 (film tax credit claimable if company has
surrenderable loss) for any accounting period, any Northern Ireland
45supplementary deduction made by the company in the period (and any

Corporation Tax (Northern Ireland) BillPage 43

Northern Ireland supplementary deduction made in any previous
accounting period) is to be ignored.

357RE Artificially inflated claims for additional deduction

Section 1205(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims for
5additional deduction or film tax credit) has effect as if references to an
additional deduction under Chapter 3 of Part 15 of that Act included a
Northern Ireland supplementary deduction under this Chapter.

Film losses
357RF Restriction on use of losses while film is in production

(1) 10Section 1209 of CTA 2009 (restriction on use of losses while film is in
production) has effect subject as follows.

(2) The reference in subsection (1) of that section to a loss made in the
separate film trade in a pre-completion period is, if the company is a
Northern Ireland company in that period, a reference to—

(a) 15any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsection (2) of that section are to be read
accordingly.

(3) Subsection (4) applies if a Northern Ireland company has, in a pre-
20completion period—

(a) both Northern Ireland losses of the trade and mainstream
profits of the trade, or

(b) both mainstream losses of the trade and Northern Ireland
profits of the trade.

(4) 25The company may make a claim under section 37 (relief for trade losses
against total profits) for relief for the losses mentioned in subsection
(3)(a) or (b).

(5) But relief on such a claim is available only—

(a) in the case of a claim for relief for Northern Ireland losses,
30against mainstream profits of the trade of the same period;

(b) in the case of a claim for relief for mainstream losses, against
Northern Ireland profits of the trade of the same period.

(6) In this section “a pre-completion period” has the same meaning as in
section 1209 of CTA 2009 (see section 1208(2) of that Act).

357RG 35 Use of losses in later periods

(1) Section 1210 of CTA 2009 (restriction on use of losses in later periods)
has effect subject as follows.

(2) The reference in subsection (2) of that section to a loss made in the
separate film trade is, in relation to a loss made in a period in which the
40company is a Northern Ireland company, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsections (3) and (6) of that section are to
be read accordingly.

Corporation Tax (Northern Ireland) BillPage 44

(3) The reference in subsection (4) of that section to a loss made in the
separate film trade in a relevant later period is, where the company is a
Northern Ireland company in the period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 5any mainstream losses of the trade of the period;

and references to losses in subsections (5) and (6) of that section are to
be read accordingly.

(4) Subsection (6) of that section has effect, in relation to Northern Ireland
losses, as if the reference to an additional deduction under Chapter 3 of
10Part 15 of that Act included a reference to a Northern Ireland
supplementary deduction under this Chapter.

357RH Terminal losses

(1) Section 1211 of CTA 2009 (terminal losses) has effect subject as follows.

(2) Where—

(a) 15a company makes an election under subsection (3) of that
section (election to treat terminal loss as loss brought forward of
different trade) in relation to all or part of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
20forward were to a Northern Ireland loss brought forward.

(3) Where—

(a) a company makes a claim under subsection (6) of that section
(claim to treat terminal loss as loss brought forward by different
company) in relation to part or all of a terminal loss, and

(b) 25the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
forward were to a Northern Ireland loss brought forward.

CHAPTER 12 Television production

Introductory
357S 30Introduction and interpretation

(1) This Chapter makes provision about the operation of Part 15A of CTA
2009 (television production) in relation to expenditure incurred by a
company in an accounting period in which it is a Northern Ireland
company.

(2) 35In this Chapter—

(a) “Northern Ireland expenditure” means expenditure incurred in
a trade to the extent that the expenditure forms part of the
Northern Ireland profits or Northern Ireland losses of the trade;

(b) “the separate programme trade” has the same meaning as in
40Chapter 3 of Part 15A of CTA 2009 (see section 1216C(6) of that
Act);

(c) “qualifying expenditure” has the same meaning as in that
Chapter (see section 1216CF(3) of that Act).

Corporation Tax (Northern Ireland) BillPage 45

(3) References in Part 15A of CTA 2009 to “television tax relief” include
relief under this Chapter.

Television tax relief
357SA Northern Ireland additional deduction

(1) 5In this Chapter “a Northern Ireland additional deduction” means so
much of a deduction under section 1216CF of CTA 2009 (additional
deduction for qualifying expenditure) as is calculated by reference to
qualifying expenditure that is Northern Ireland expenditure.

(2) A Northern Ireland additional deduction forms part of the Northern
10Ireland profits or Northern Ireland losses of the separate programme
trade.

357SB Northern Ireland supplementary deduction

(1) This section applies where—

(a) a company is entitled under section 1216CF of CTA 2009 to an
15additional deduction in calculating the profit or loss of the
separate programme trade in an accounting period,

(b) the company is a Northern Ireland company in the period,

(c) the additional deduction is wholly or partly a Northern Ireland
additional deduction, and

(d) 20any of the following conditions is met—

(i) the company does not have a surrenderable loss in the
accounting period;

(ii) the company has a surrenderable loss in the accounting
period, but does not make a claim under section 1216CH
25of CTA 2009 (television tax credit claimable if company
has surrenderable loss) for the period;

(iii) the company has a surrenderable loss in the accounting
period and makes a claim under that section for the
period, but the amount of Northern Ireland losses
30surrendered on the claim is less than the Northern
Ireland additional deduction.

(2) The company is entitled to make another deduction (“a Northern
Ireland supplementary deduction”) in respect of qualifying
expenditure.

(3) 35See section 357SC for provision about the amount of the Northern
Ireland supplementary deduction.

(4) The Northern Ireland supplementary deduction—

(a) is made in calculating the profit or loss of the separate
programme trade, and

(b) 40forms part of the Northern Ireland profits or Northern Ireland
losses of the separate programme trade.

(5) In this section “surrenderable loss” has the meaning given by section
1216CH of CTA 2009.

Corporation Tax (Northern Ireland) BillPage 46

357SC Northern Ireland supplementary deduction: amount

(1) This section contains provision for the purposes of section 357SB(2)
about the amount of the Northern Ireland supplementary deduction.

(2) If the accounting period falls within only one financial year, the amount
5of the Northern Ireland supplementary deduction is—


where—

  • A is the amount of the Northern Ireland additional deduction
    brought into account in the accounting period;

  • 10B is the amount of Northern Ireland losses surrendered in any
    claim under section 1216CH of CTA 2009 for the accounting
    period;

  • MR is the main rate for the financial year;

  • NIR is the Northern Ireland rate for the financial year.

(3) 15If the accounting period falls within more than one financial year, the
amount of the Northern Ireland supplementary deduction is
determined by taking the following steps.

Step 1

Calculate, for each financial year, the amount that would be the
20Northern Ireland supplementary deduction for the accounting period
if it fell within only that financial year (see subsection (2)).

Step 2

Multiply each amount calculated under step 1 by the proportion of the
accounting period that falls within the financial year for which it is
25calculated.

Step 3

Add together each amount found under step 2.

357SD Tax credit: Northern Ireland supplementary deduction ignored

For the purpose of determining the available loss of a company under
30section 1216CH of CTA 2009 (television tax credit claimable if company
has surrenderable loss) for any accounting period, any Northern
Ireland supplementary deduction made by the company in the period
(and any Northern Ireland supplementary deduction made in any
previous accounting period) is to be ignored.

357SE 35 Artificially inflated claims for additional deduction

Section 1216CL(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims
for additional deduction or tax credit) has effect as if references to an
additional deduction under Chapter 3 of Part 15A of that Act included
a Northern Ireland supplementary deduction under this Chapter.

40Programme losses
357SF Restriction on use of losses while programme in production

(1) Section 1216DA of CTA 2009 (restriction on use of losses while
programme in production) has effect subject as follows.

Corporation Tax (Northern Ireland) BillPage 47

(2) The reference in subsection (1) of that section to a loss made in the
separate programme trade in a pre-completion period is, if the
company is a Northern Ireland company in that period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 5any mainstream losses of the trade of the period;

and references to losses in subsection (2) of that section are to be read
accordingly.

(3) Subsection (4) applies if a Northern Ireland company has, in a pre-
completion period—

(a) 10both Northern Ireland losses of the trade and mainstream
profits of the trade, or

(b) both mainstream losses of the trade and Northern Ireland
profits of the trade.

(4) The company may make a claim under section 37 (relief for trade losses
15against total profits) for relief for the losses mentioned in subsection
(3)(a) or (b).

(5) But relief on such a claim is available only—

(a) in the case of a claim for relief for Northern Ireland losses,
against mainstream profits of the trade of the same period;

(b) 20in the case of a claim for relief for mainstream losses, against
Northern Ireland profits of the trade of the same period.

(6) In this section “a pre-completion period” has the same meaning as in
section 1216DA of CTA 2009 (see section 1216D(2) of that Act).

357SG Use of losses in later periods

(1) 25Section 1216DB of CTA 2009 (use of losses in later periods) has effect
subject as follows.

(2) The reference in subsection (2) of that section to a loss made in the
separate programme trade is, in relation to a loss made in a period in
which the company is a Northern Ireland company, a reference to—

(a) 30any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsections (3) and (6) of that section are to
be read accordingly.

(3) The reference in subsection (4) of that section to a loss made in the
35separate programme trade in a relevant later period is, where the
company is a Northern Ireland company in the period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsections (5) and (6) of that section are to
40be read accordingly.

(4) Subsection (6) of that section has effect, in relation to Northern Ireland
losses, as if the reference to an additional deduction under Chapter 3 of
Part 15A of that Act included a reference to a Northern Ireland
supplementary deduction under this Chapter.

Corporation Tax (Northern Ireland) BillPage 48

357SH Terminal losses

(1) Section 1216DC of CTA 2009 (terminal losses) has effect subject as
follows.

(2) Where—

(a) 5a company makes an election under subsection (3) of that
section (election to treat terminal loss as loss brought forward of
different trade) in relation to all or part of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
10forward were to a Northern Ireland loss brought forward.

(3) Where—

(a) a company makes a claim under subsection (6) of that section
(claim to treat terminal loss as loss brought forward by different
company) in relation to part or all of a terminal loss, and

(b) 15the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
forward were to a Northern Ireland loss brought forward.

CHAPTER 13 Video games development

Introductory
357T 20Introduction and interpretation

(1) This Chapter makes provision about the operation of Part 15B of CTA
2009 (video games development) in relation to expenditure incurred by
a company in an accounting period in which it is a Northern Ireland
company.

(2) 25In this Chapter—

(a) “Northern Ireland expenditure” means expenditure incurred in
a trade to the extent that the expenditure forms part of the
Northern Ireland profits or Northern Ireland losses of the trade;

(b) “the separate video game trade” has the same meaning as in
30Chapter 3 of Part 15B of CTA 2009 (see section 1217C(6) of that
Act);

(c) “qualifying expenditure” has the same meaning as in that
Chapter (see section 1217CF(3) of that Act).

(3) References in Part 15B of CTA 2009 to “video games tax relief” include
35relief under this Chapter.

Video games tax relief
357TA Northern Ireland additional deduction

(1) In this Chapter “a Northern Ireland additional deduction” means so
much of a deduction under section 1217CF of CTA 2009 (additional
40deduction for qualifying expenditure) as is calculated by reference to
qualifying expenditure that is Northern Ireland expenditure.

Corporation Tax (Northern Ireland) BillPage 49

(2) A Northern Ireland additional deduction forms part of the Northern
Ireland profits or Northern Ireland losses of the separate video game
trade.

357TB Northern Ireland supplementary deduction

(1) 5This section applies where—

(a) a company is entitled under section 1217CF of CTA 2009 to an
additional deduction in calculating the profit or loss of the
separate video game trade in an accounting period,

(b) the company is a Northern Ireland company in the period,

(c) 10the additional deduction is wholly or partly a Northern Ireland
additional deduction, and

(d) any of the following conditions is met—

(i) the company does not have a surrenderable loss in the
accounting period;

(ii) 15the company has a surrenderable loss in the accounting
period, but does not make a claim under section 1217CH
of CTA 2009 (video game tax credit claimable if
company has surrenderable loss) for the period;

(iii) the company has a surrenderable loss in the accounting
20period and makes a claim under that section for the
period, but the amount of Northern Ireland losses
surrendered on the claim is less than the Northern
Ireland additional deduction.

(2) The company is entitled to make another deduction (“a Northern
25Ireland supplementary deduction”) in respect of qualifying
expenditure.

(3) See section 357TC for provision about the amount of the Northern
Ireland supplementary deduction.

(4) The Northern Ireland supplementary deduction—

(a) 30is made in calculating the profit or loss of the separate video
game trade, and

(b) forms part of the Northern Ireland profits or Northern Ireland
losses of the separate video game trade.

(5) In this section “surrenderable loss” has the meaning given by section
351217CH of CTA 2009.

357TC Northern Ireland supplementary deduction: amount

(1) This section contains provision for the purposes of section 357TB(2)
about the amount of the Northern Ireland supplementary deduction.

(2) If the accounting period falls within only one financial year, the amount
40of the Northern Ireland supplementary deduction is—


where—

  • A is the amount of the Northern Ireland additional deduction
    brought into account in the accounting period;

  • Corporation Tax (Northern Ireland) BillPage 50

  • B is the amount of Northern Ireland losses surrendered in any
    claim under section 1217CH of CTA 2009 for the accounting
    period;

  • MR is the main rate for the financial year;

  • 5NIR is the Northern Ireland rate for the financial year.

(3) If the accounting period falls within more than one financial year, the
amount of the Northern Ireland supplementary deduction is
determined by taking the following steps.

Step 1

10Calculate, for each financial year, the amount that would be the
Northern Ireland supplementary deduction for the accounting period
if it fell within only that financial year (see subsection (2)).

Step 2

Multiply each amount calculated under step 1 by the proportion of the
15accounting period that falls within the financial year for which it is
calculated.

Step 3

Add together each amount found under step 2.

357TD Tax credit: Northern Ireland supplementary deduction ignored

20For the purpose of determining the available loss of a company under
section 1217CH of CTA 2009 (video game tax credit claimable if
company has surrenderable loss) for any accounting period, any
Northern Ireland supplementary deduction made by the company in
the period (and any Northern Ireland supplementary deduction made
25in any previous accounting period) is to be ignored.

357TE Artificially inflated claims for additional deduction

Section 1217CL(1)(a) and (2)(a) of CTA 2009 (artificially inflated claims
for additional deduction or film tax credit) has effect as if references to
an additional deduction under Chapter 3 of Part 15B of that Act
30included a Northern Ireland supplementary deduction under this
Chapter.

Video game losses
357TF Restriction on use of losses while video game in development

(1) Section 1217DA of CTA 2009 (restriction on use of losses while video
35game in development) has effect subject as follows.

(2) The reference in subsection (1) of that section to a loss made in the
separate video game trade in a pre-completion period is, if the
company is a Northern Ireland company in that period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 40any mainstream losses of the trade of the period;

and references to losses in subsection (2) of that section are to be read
accordingly.

(3) Subsection (4) applies if a Northern Ireland company has, in a pre-
completion period—

(a) 45both Northern Ireland losses of the trade and mainstream
profits of the trade, or

Corporation Tax (Northern Ireland) BillPage 51

(b) both mainstream losses of the trade and Northern Ireland
profits of the trade.

(4) The company may make a claim under section 37 (relief for trade losses
against total profits) for relief for the losses mentioned in subsection
5(3)(a) or (b).

(5) But relief on such a claim is available only—

(a) in the case of a claim for relief for Northern Ireland losses,
against mainstream profits of the trade of the same period;

(b) in the case of a claim for relief for mainstream losses, against
10Northern Ireland profits of the trade of the same period.

(6) In this section “a pre-completion period” has the same meaning as in
section 1217DA of CTA 2009 (see section 1217D(2) of that Act).

357TG Use of losses in later periods

(1) Section 1217DB of CTA 2009 (use of losses in later periods) has effect
15subject as follows.

(2) The reference in subsection (2) of that section to a loss made in the
separate video game trade is, in relation to a loss made in a period in
which the company is a Northern Ireland company, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 20any mainstream losses of the trade of the period;

and references to losses in subsections (3) and (6) of that section are to
be read accordingly.

(3) The reference in subsection (4) of that section to a loss made in the
separate video game trade in a relevant later period is, where the
25company is a Northern Ireland company in the period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsections (5) and (6) of that section are to
be read accordingly.

(4) 30Subsection (6) of that section has effect, in relation to Northern Ireland
losses, as if the reference to an additional deduction under Chapter 3 of
Part 15B of that Act included a reference to a Northern Ireland
supplementary deduction under this Chapter.

357TH Terminal losses

(1) 35Section 1217DC of CTA 2009 (terminal losses) has effect subject as
follows.

(2) Where—

(a) a company makes an election under subsection (3) of that
section (election to treat terminal loss as loss brought forward of
40different trade) in relation to all or part of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
forward were to a Northern Ireland loss brought forward.

(3) Where—

Corporation Tax (Northern Ireland) BillPage 52

(a) a company makes a claim under subsection (6) of that section
(claim to treat terminal loss as loss brought forward by different
company) in relation to part or all of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

5that subsection has effect as if the reference in it to a loss brought
forward were to a Northern Ireland loss brought forward.

CHAPTER 14 Theatrical productions

Introductory
357U Introduction and interpretation

(1) 10This Chapter makes provision about the operation of Part 15C of CTA
2009 (theatrical productions) in relation to expenditure incurred by a
company in an accounting period in which it is a Northern Ireland
company.

(2) In this Chapter—

(a) 15“Northern Ireland expenditure” means expenditure incurred in
a trade to the extent that the expenditure forms part of the
Northern Ireland profits or Northern Ireland losses of the trade;

(b) “the separate theatrical trade” has the same meaning as in Part
15C of CTA 2009 (see section 1217I of that Act);

(c) 20“qualifying expenditure” has the same meaning as in that Part
(see section 1217JA of that Act).

Tax relief for theatrical productions
357UA Northern Ireland additional deduction

(1) In this Chapter “a Northern Ireland additional deduction” means so
25much of a deduction under section 1217H of CTA 2009 (claim for
additional deduction) as is calculated by reference to qualifying
expenditure that is Northern Ireland expenditure.

(2) A Northern Ireland additional deduction forms part of the Northern
Ireland profits or Northern Ireland losses of the separate theatrical
30trade.

357UB Northern Ireland supplementary deduction

(1) This section applies where—

(a) a company is entitled under section 1217H of CTA 2009 to an
additional deduction in calculating the profit or loss of the
35separate theatrical trade in an accounting period,

(b) the company is a Northern Ireland company in the period,

(c) the additional deduction is wholly or partly a Northern Ireland
additional deduction, and

(d) any of the following conditions is met—

(i) 40the company does not have a surrenderable loss in the
accounting period;

Corporation Tax (Northern Ireland) BillPage 53

(ii) the company has a surrenderable loss in the accounting
period, but does not make a claim under section 1217K
of CTA 2009 (theatre tax credit claimable if company has
surrenderable loss) for the period;

(iii) 5the company has a surrenderable loss in the accounting
period and makes a claim under that section for the
period, but the amount of Northern Ireland losses
surrendered on the claim is less than the Northern
Ireland additional deduction.

(2) 10The company is entitled to make another deduction (“a Northern
Ireland supplementary deduction”) in respect of qualifying
expenditure.

(3) See section 357UC for provision about the amount of the Northern
Ireland supplementary deduction.

(4) 15The Northern Ireland supplementary deduction—

(a) is made in calculating the profit or loss of the separate theatrical
trade, and

(b) forms part of the Northern Ireland profits or Northern Ireland
losses of the separate theatrical trade.

(5) 20In this section “surrenderable loss” has the meaning given by section
1217KA of CTA 2009.

357UC Northern Ireland supplementary deduction: amount

(1) This section contains provision for the purposes of section 357UB(2)
about the amount of the Northern Ireland supplementary deduction.

(2) 25If the accounting period falls within only one financial year, the amount
of the Northern Ireland supplementary deduction is—


where—

  • A is the amount of the Northern Ireland additional deduction
    30brought into account in the accounting period;

  • B is the amount of Northern Ireland losses surrendered in any
    claim under section 1217K of CTA 2009 for the accounting
    period;

  • MR is the main rate for the financial year;

  • 35NIR is the Northern Ireland rate for the financial year.

(3) If the accounting period falls within more than one financial year, the
amount of the Northern Ireland supplementary deduction is
determined by taking the following steps.

Step 1

40Calculate, for each financial year, the amount that would be the
Northern Ireland supplementary deduction for the accounting period
if it fell within only that financial year (see subsection (2)).

Step 2

Multiply each amount calculated under step 1 by the proportion of the
45accounting period that falls within the financial year for which it is
calculated.

Corporation Tax (Northern Ireland) BillPage 54

Step 3

Add together each amount found under step 2.

357UD Tax credit: Northern Ireland supplementary deduction ignored

5For the purpose of determining the available loss of a company under
section 1217KA of CTA 2009 (amount of surrenderable loss) for any
accounting period, any Northern Ireland supplementary deduction
made by the company in the period (and any Northern Ireland
supplementary deduction made in any previous accounting period) is
10to be ignored.

357UE Transactions not entered into for genuine commercial reasons

Section 1217LB of CTA 2009 (transactions not entered into for genuine
commercial reasons) has effect as if the reference in subsection (2)(a) to
an additional deduction under Part 15C of that Act included a reference
15to a Northern Ireland supplementary deduction under this Chapter.

Use of losses
357UF Restriction on use of losses before completion period

(1) Section 1217MA of CTA 2009 (restriction on use of losses before
completion period) has effect subject as follows.

(2) 20The reference in subsection (1) of that section to a loss made in the
separate theatrical trade in an accounting period preceding the
completion period is, if the company is a Northern Ireland company in
that period, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 25any mainstream losses of the trade of the period;

and references to losses in subsection (2) of that section are to be read
accordingly.

(3) Subsection (4) applies if a Northern Ireland company has, in an
accounting period preceding the completion period—

(a) 30both Northern Ireland losses of the trade and mainstream
profits of the trade, or

(b) both mainstream losses of the trade and Northern Ireland
profits of the trade.

(4) The company may make a claim under section 37 (relief for trade losses
35against total profits) for relief for the losses mentioned in subsection
(3)(a) or (b).

(5) But relief on such a claim is available only—

(a) in the case of a claim for relief for Northern Ireland losses,
against mainstream profits of the trade of the same period;

(b) 40in the case of a claim for relief for mainstream losses, against
Northern Ireland profits of the trade of the same period.

(6) In this section “the completion period” has the same meaning as in
section 1217MA of CTA 2009 (see section 1217M(2) of that Act).

Corporation Tax (Northern Ireland) BillPage 55

357UG Use of losses in the completion period

(1) Section 1217MB of CTA 2009 (use of losses in the completion period)
has effect subject as follows.

(2) The reference in subsection (1) of that section to a loss made in the
5separate theatrical trade is, in relation to a loss made in a period in
which the company is a Northern Ireland company, a reference to—

(a) any Northern Ireland losses of the trade of the period, or

(b) any mainstream losses of the trade of the period;

and references to losses in subsections (2) and (4) of that section are to
10be read accordingly.

(3) The references in subsection (3) of that section to a loss made in the
separate theatrical trade in the completion period are, where the
company is a Northern Ireland company in the period, references to—

(a) any Northern Ireland losses of the trade of the period, or

(b) 15any mainstream losses of the trade of the period;

and references to losses in subsection (4) of that section are to be read
accordingly.

(4) Subsection (4) of that section has effect, in relation to Northern Ireland
losses, as if the reference to an additional deduction under section
201217H of CTA 2009 included a reference to a Northern Ireland
supplementary deduction under this Chapter.

357UH Terminal losses

(1) Section 1217MC of CTA 2009 (terminal losses) has effect subject as
follows.

(2) 25Where—

(a) a company makes an election under subsection (2) of that
section (election to treat terminal loss as loss brought forward of
different trade) in relation to all or part of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

30subsection (3) of that section has effect as if the reference in it to a loss
brought forward were to a Northern Ireland loss brought forward.

(3) Where—

(a) a company makes a claim under subsection (6) of that section
(claim to treat terminal loss as loss brought forward by different
35company) in relation to part or all of a terminal loss, and

(b) the terminal loss is a Northern Ireland loss,

that subsection has effect as if the reference in it to a loss brought
forward were to a Northern Ireland loss brought forward.

Provisional entitlement to relief
357UI 40 Provisional entitlement to relief

Section 1217N(3) of CTA 2009 (provisional entitlement to relief:
definition of “the relieving provisions”) has effect as if the reference to
section 1217H of CTA 2009 included section 357UB of this Act.

Corporation Tax (Northern Ireland) BillPage 56

CHAPTER 15 Profits arising from the exploitation of patents etc

Introductory
357V Introductory

(1) This Chapter makes provision about the operation of Part 8A (profits
5arising from the exploitation of patents etc) in relation to an accounting
period in which a company is a Northern Ireland company.

(2) If a company—

(a) has made an election under section 357A (election for special
treatment of profits from patents etc) with respect to a trade of
10the company in relation to an accounting period, and

(b) is a Northern Ireland company in that period,

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